Sizing Up the Trumponomics Gamble on Deficit Spending and Inflation

Mony
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Two of the biggest legislative deals in Donald Trump’s presidency—a $1.5 trillion tax cut and a $300 billion spending package—illustrate an emerging feature of Trumponomics: a willingness to tolerate larger budget deficits deep into an economic expansion.

Deficits normally swell during downturns, when tax receipts fall and spending rises on unemployment insurance and other safety net programs, and they shrink when the economy grows. The last two years are unusual because deficits have edged higher even as the expansion advanced.

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